[PEN-L:6567] Chinese Poliburo orders reassessment of Relations

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Monday  May 10  1999

                Urgent US action  needed to soothe Beijing and prevent
collapse of ties

               WILLY WO-LAP LAM

               Sino-US ties could take a leap backwards
               if Washington does not take substantial
               action to mollify Beijing.

               Senior cadres, including Politburo
               Standing Committee members, who met
               in emergency sessions on Saturday and
               yesterday, have ordered an overall
               assessment of relations.

               A Beijing source said the "minimum
               requirements" set forth by relatively
               moderate cadres was that the US and
               Nato authorities issue a full apology, pay
               adequate compensation and allow China
               a bigger role in the resolution of the
               Balkans conflict.

               However, the hawks, including PLA
               generals, were pushing for more pressure
               to be applied to the US - and overall
               scaling down of relations - unless Nato
               agreed to halt hostilities against
               Yugoslavia.

               The hardliners, one of whose leaders
               was PLA Vice-Chief of Staff General
               Xiong Guangkai, have held meetings in
               which they insisted the embassy strike
               was a pre-meditated attempt to trample
               on Chinese sovereignty.

               Pointing to Beijing's line that it reserved
               the right to take "further action", the
               generals indicated they would do their
               best if that "action" contained a military
               component.

               The source said that while
               Vice-President Hu Jintao had yesterday
               warned against anti-US protests
               deteriorating into lawlessness,
               government-organised protests would
               continue at least through this week.

               In an effort at social mobilisation not
               seen since the first months after the
               Tiananmen Square crackdown, Beijing
               has asked most official units and social
               and "mass" organisations to hold
               meetings to voice support for its tough
               line on Kosovo.

               One reason why the hardliners have the
               upper hand is that drumming up
               patriotism is seen by Beijing as a means
               to divert attention from social problems,
               such as unemployment.

               The source said that if the Sino-US
               quarrel over Kosovo remained
               unresolved, a broad array of ties would
               be affected. These included the talks on
               China's accession to the World Trade
               Organisation (WTO).

               Members of the pro-WTO and pro-US
               faction of the leadership were quick to
               pre-empt criticism from hardliners that
               they had "sold out" to US interests.

               Foreign Trade Minister Shi Guangsheng,
               already faulted for yielding too many
               trade concessions to the US, was among
               the first ministers to call a meeting of his
               staff to denounce "US hegemonism and
               power politics".

               It is expected that Mr Shi and his boss,
               Premier Zhu Rongji, will reverse some of
               the concessions they granted to US trade
               negotiators over the objections of many
               ministries and regional administrations.

               Isolated attacks on US businesses in
               Guangzhou and other cities yesterday
               showed anti-Americanism could affect
               business.

               Foreign diplomats said that even if
               Washington and Nato were to meet some
               of Beijing's demands, a pall would still be
               cast over relations.

               "Many cadres think Kosovo heralds a
               new wave of 'neo-imperialism' which will
               cut into Chinese interests sooner or
               later," a Western diplomat said. "Beijing
               cannot live with Nato's ideal that
               humanitarianism is above national
               boundaries."

               A Beijing University expert said last night
               Nato had become a "military machine"
               that might one day use Tibet or Taiwan
               to interfere in Chinese affairs.